Steelcase Inc. reported its financial results for the third quarter of fiscal 2025, revealing a revenue increase of 2% to $794.9 million compared to $777.9 million in the same period last year. The Americas segment drove this growth, with a 5% rise in revenue to $614.7 million, attributed to higher demand from government, corporate, healthcare, and education sectors. However, the International segment experienced a decline of 6%, primarily due to reduced demand in Asia Pacific markets, except for India and France.
The company's net income for the quarter was $19.1 million, or $0.16 per diluted share, down from $30.8 million, or $0.26 per diluted share, in the prior year. This decrease was influenced by a non-cash settlement charge of $15.2 million related to the annuitization of a defined benefit pension plan in the U.K., which negatively impacted earnings by $0.10 per share. Operating income also fell to $41.0 million from $43.8 million, although adjusted operating income remained relatively stable at $47.3 million compared to $49.3 million in the previous year.
In terms of operational developments, Steelcase continued to implement restructuring initiatives aimed at enhancing efficiency, particularly in the International segment, where it recorded restructuring costs of $2.0 million. The company also reported a significant increase in cash and cash equivalents, totaling $365.2 million as of November 22, 2024, up from $318.6 million at the end of the previous fiscal period. This increase reflects improved cash flow from operations, despite a decline in cash generated from investing activities.
Looking ahead, Steelcase anticipates continued challenges in the International markets but remains optimistic about growth in the Americas. The company is investing in a new enterprise resource planning (ERP) system, with expectations to begin amortizing related costs in 2026. Additionally, Steelcase plans to maintain its focus on cost reduction initiatives and operational efficiency to navigate the current market conditions. The company’s liquidity position is strong, with total liquidity sources amounting to $576.6 million, which is expected to support its operational and strategic needs moving forward.
About STEELCASE INC
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